Fund Distribution: A Changed Landscape Independence Commitment Expertise
Welcome Mike Kirby Managing Principal, KB Associates 2
3
International Fund Distribution; Key Trends 2013 Ross Allen Consultant, KB Associates 4
Global Fund Assets 2003:Total Fund Assets 11 trillion 2013: Total Fund Assets 26.5 trillion 2003 2013 Source: EFAMA March 2013 5
Europe Assets by Domicile Total Fund Assets 9.2 TR Source: EFAMA Q1 2013 6
Europe Source: Lipper - Retail Market % (estimated market value 2012- EFAMA/KBA) 7
Bn Europe UCITS Sales 12 Month Total: 247 Bn Source: EFAMA July 2013 8
Europe UCITS Sales Bn 12 Month Total Equity: 72 Bn 12 Month Total Bond: 174 Bn Source: EFAMA July 2013 9
Europe Fund Sales excluding MMs Source: Lipper 2013. NOTE- Excludes Cross-Border Sales 10
Europe UCITS Sales EUR Bn Source: EFAMA 2013 11
Europe Changing Shape Source: Lipper 2012/KBA 12
Investment Strategies Source: Lipper 2013 -totals exclude Fund of Fund assets 13
Distribution Channels: Europe Source: Lipper 2012 14
UCITS Investor Base Source: EFAMA 2011 15
Independence Commitment Expertise 16
AIFMD Implications for US Managers: A Legal Snapshot Jason S. Kaplan Partner, Schulte Roth & Zabel LLP 17
Hedge Fund Distribution in an AIFMD World Moderator: Michael Parton, Executive Director, KB Associates (Cayman) Ltd Speakers: Kenny D. King, Executive Director, J.P. Morgan Mikael A. Johnson, Lead Partner, KPMG LLP Robert Duggan, Partner, Mourant Ozannes Edward J. Fassano, COO, CFO & CCO, Seawolf Capital LLC 18
UCITS V & VI Implications for US Managers: A Legal Snapshot Barbara Cronin Associate, Dechert LLP 19
UCITS V Background and State of Play EU Commission s original concerns? Caps on manager remuneration and performance fees - not part of the original agenda July 2013: European Parliament adopted amended version of its ECON committee report on UCITS V
UCITS V - Agenda Depositary rules Remuneration rules Penalties for breach Alignment with AIFMD
UCITS V - Depositary Rules Eligibility No passport Re-hypothecation of assets? Delegation Liability - new standard - no contractual discharge
UCITS V - Remuneration Alignment with AIFMD Bonus cap defeated at European Parliament ESMA guidelines on proportionality Look-through to self-managed funds? Covered staff Disclosure requirements Regulatory monitoring
UCITS V - Penalties Prescribed investor protection provisions Prescribed sanctions Whistle blowing provisions No distinction between self-managed funds and funds with external management company
UCITS V Impact on Industry Costs Scope of depositary services Remuneration - change to risk profile Variable remuneration
UCITS VI More Changes! Not industry driven Overlap with other EU regulation Focus on: 1) Eligible assets and use of derivatives 2) Efficient portfolio management techniques 3) OTC Derivatives 4) Extraordinary liquidity management rules 5) Depositary passport 6) Money market funds 7) Long term investments 8) Addressing some of the issues of UCITS IV
Outlook and Timing UCITS V & VI UCITS V Trilogue negotiations ESMA guidance 2015/2016 UCITS VI White Paper
Dechert LLP Definitive advice Practical guidance Powerful advocacy dechert.com Almaty Austin Beijing Boston Brussels Charlotte Chicago Dubai Dublin Frankfurt Hartford Hong Kong London Los Angeles Luxembourg Moscow Munich New York Orange County Paris Philadelphia Princeton San Francisco Silicon Valley Tbilisi Washington, D.C. Dechert practices as a limited liability partnership or limited liability company other than in Almaty, Dublin, Hong Kong, Luxembourg and Tbilisi.
UCITS Distribution Opportunities; How to Make it Happen? Moderator: Jill Paitchel, Executive Director, KB Associates America Speakers: David Giannone, Vice President, BNP Paribas Steve Williams, CEO, Brook Green Capital Ltd Kevin Ferguson, Partner, Harding Loevner LP Patrick Mc Neils, Managing Director, Seix Investment Advisors LLC 29
What Investors Really Want? Moderator: Mike Kirby, Managing Principal, KB Associates Speakers: Christopher J. Addy, President & CEO, Castle Hall Alternatives Jeffrey Fulk, Vice President, Guggenheim Partners, LLC Clark Cheng, Head of Alternative Investment Research, HSBC Steve MacRae, Managing Director, SEI 30
Closing Remarks Mike Kirby, Managing Principal, KB Associates 31
KB Associates Offshore Fund Consulting Centennial Towers, West Bay, PO Box 31249, Grand Cayman, KY11205 Cayman Islands Tel: +1 345 525 4224 Fleming Court Fleming s Place Dublin 4 Ireland Tel: +353 1 668 7684 42 Brook Street London W1K 5DB United Kingdom Tel: +44 203 170 8814 Luxembourg Tel: +352 621 279 920 260 Madison Ave 8th Floor New York, NY 10016 USA Tel: +1 646 216 2103 www.kbassociates.ie info@kbassociates.ie 32